3D Printing Financials: Materialise’s Diversified Portfolio Powers Q3 Growth

Materialise (Nasdaq: MTLS) has wrapped up a solid third quarter, fueled by growth across its diverse 3D printing segments. Known for its pioneering role in 3D printing software, Materialise demonstrated resilience and innovation, outperforming expectations in an industry facing headwinds. This quarter’s numbers reveal a company skillfully navigating the demands of medical, software, and manufacturing markets while advancing its strategic priorities.

For the third quarter of 2024, Materialise reported a total revenue increase of 14.2%, reaching €68.7 million compared to last year’s €60.1 million. This growth spanned all segments, with its medical division posting a 24.5% revenue increase, the strongest across the company. While profits dipped, with net earnings at €3.04 million compared to €4.01 million a year earlier, the company’s revenue boost and diversified business have kept it well-positioned to thrive. Strategic investments in mass personalization, rapid-response trauma solutions, and advanced software development are paying off.

Materialise CEO Brigitte de Vet-Veithen at Additive Manufacturing Strategies 2024. Image courtesy of 3DPrint.com.

Customized Healthcare

Materialise Medical was the quarter’s star performer, leading as the largest revenue generator for only the second time in the company’s history and accounting for 44% of total revenue. CEO Brigitte de Vet-Veithen attributed this to a “mass personalization strategy” and investments in facilities like the U.S.-based plant, which delivers faster solutions for trauma patients.

“We continuously ask ourselves how we can serve more patients with personalized approaches rather than just benefiting a lucky few, and in the last few years, we’ve made strategic investments to broaden the population we are reaching,” de Vet-Veithen told investors during an earnings call to discuss the quarter’s results. “Thanks to our U.S. manufacturing plant, we have managed to bring our personalized solutions to trauma patients who need to have a solution in days, not weeks. The U.S. facility enables us to deliver parts with much shorter and more reliable lead times. Thanks to this plant and the investment we made there, we managed to triple the number of trauma cases we treated per quarter compared to the number we treated before the opening of the plant.”

The manufacturing plant de Vet-Veithen is talking about is located in Plymouth, Michigan, and produces personalized medical solutions, including custom devices, instrumentation, and implants. It plays a key role in Materialise’s ability to deliver rapid, customized care, significantly expanding the company’s reach in urgent medical cases.

According to the executive, Materialise is now delivering solutions faster than any other provider in the U.S. market and expects continued growth and deeper market penetration. Although the facility isn’t currently at full capacity, there’s room to expand with additional machines and resources as demand grows, positioning the plant for future scalability.

Materialise manufacturing sites. Image courtesy of Materialise.

Digital Backbone of 3D Printing

This approach, along with strategic developments like the cloud-based Mimics Flow platform, is helping Materialise bring timely, tailored healthcare to more patients than ever. To strengthen its role in the research and engineering markets, Materialise has invested in its Mimics platform, which has traditionally allowed researchers and engineers to segment patient medical images, create 3D models, and design custom implants and instruments.

The CEO explained that with Mimics Flow, Materialise is making these personalized workflows faster and more integrated within the broader healthcare ecosystem, helping accelerate the adoption of patient-specific treatments across the industry. Since launching this solution, Materialise has contracted ten customers and expects continued growth in uptake throughout the fourth quarter and into 2025.

Building on this momentum, software played a key role in the company’s growth strategy this quarter, with the segment reporting a 2.8% revenue increase to €11.1 million. CFO Koen Berges told investors that partnerships with industry leaders like nTop and DigiFabster fueled these gains, expanding reach and functionality.

Moreover, the latest Magics 28 release saw quick adoption by nearly half of active users, while tools like e-Stage for Metal+ are gaining traction for automating complex workflows. These advances helped establish the brand’s software segment as a key resource in 3D printing.

Materialise Mimics Flow case management. Image courtesy of Materialise.

Next-Level Manufacturing

On the manufacturing side, revenue grew 9.1% to €27.3 million. Even though this segment faces challenges from weak prototyping demand, Materialise’s newly expanded ACTech plant in Freiberg, Germany, promises to meet the demand for large, heavier, and complex metal parts in agriculture, mining, construction, and marine vehicles. While ACTech is not a 100% 3D printing operation, it also utilizes traditional casting and advanced post-processing, which De Vet-Veithen noted as essential for handling the rising part complexity in these segments and achieving superior product results.

Talking to investors, de Vet-Veithen also noted that the second plant at ACTech will ship its first part in the fourth quarter. She explained that the expanded facility will boost Materialise’s capacity to serve the small-series market, reinforcing its strong position in the automotive sector, where the shift to electric vehicles drives demand for complex cast components in drivetrains and chassis. As the plant ramps up in 2025, Materialise expects an uptick in manufacturing revenue.

Printed molded parts are removed for further processing in the foundry at ACTech. Image courtesy of Materialise.

The quarter’s gross profit increased 16.6% to €39.3 million, with the margin increasing to 57.2%, thanks to strong cost control and high product demand. The company’s adjusted EBIT (earnings before interest and taxes) nearly doubled from last year, reaching €4.4 million, and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) grew to €9.9 million. De Vet-Veithen stated these earnings show the company’s “good cost management and focus on high-growth areas.”

Despite these gains, Materialise remains cautious as it heads into the last quarter. Management notes that while they expect continued growth in medical and software, prototyping demand within manufacturing remains a challenge. The new ACTech plant will incur additional capital expenses, but it’s expected to expand Materialise’s foothold in sectors that demand complex, durable parts.

The company anticipates full-year revenue to reach between €265 million and €275 million, with adjusted EBIT between €11 million and €14 million. Materialise’s diverse portfolio and smart investments in scalable facilities and software provided a solid foundation to tackle the fourth quarter and set the stage for 2025 growth.

Amid a volatile landscape, Materialise’s ability to diversify within the 3D printing space has been a key factor in its staying power. By branching out into areas like medical, software, and custom manufacturing, the company has created a well-rounded portfolio that can adapt to market shifts. Innovations such as the U.S. trauma center allowed it to provide fast, customized medical devices, setting it apart as a leader in mass personalization.

At a time when 3D printing firms face intense competition and market pressures, Materialise’s performance this quarter proves that its strategic diversification is a powerful advantage. It has created a business model as adaptable as its technology, setting it apart from the competition.